BG ponders purchase of Canadian gas fields

As part of its initiative to become the world’s principal retailer of liquefied natural gas (LNG), the BG Group is eyeing-up the acquisition of gas fields on Canada’s pacific coast, which would house a new LNG plant. The LNG installation, to be situated on Ridley Island, British Columbia, would supply fuel to expanding Asian markets.

Chief Operating Officer, Martin Houston, said that the BG Group is “pursuing several supply options and would anticipate supply from owned resource and purchased from the markets”.

New Pipeline

In a deal with Spectra Energy (SE), BG has arranged to develop an 850 km pipeline, which will pump gas to the new plant. Houston also stated that BG plans to build two production units at the Prince Rupert LNG plant, capable of producing 14 million tpy and also hinted at the possibility of a third. He continued: “We are exploring options with some of the promoters of the other western Canada LNG projects to see if we can cooperate in the development of the shared pipeline”. A final decision for the Prince Rupert operation will take place in 2016.

Auspicious region

This comes at a time when other companies are implementing plans for westbound pipelines through British Columbia. In an alliance with Petrolium Nasional Bhd and Royal Royal Dutch Shell (RDSA), TransCanada (TRP) has been working on operating two pipelines through this region. BG anticipates its first production of LNG in Canada to be in 2020.

Future largest seller of LNG

The company, based in Reading, England, is on target to become the world’s largest supplier of LNG in 2017.